Assets include

Assets include

• A. Liabilities
• B. Shareholders' Equity
• C. Current Assets and Long Term Assets
• D. Revenues

Answer: (C)

Assets are resources controlled by the entity that result from past events and are expected to bring future economic benefits. On the balance sheet they are organized into two broad groups: current assets, which are expected to be used or converted to cash within a year (such as cash, accounts receivable, and inventory), and long-term assets, which are meant to provide benefits over more than one year (such as property, plant and equipment, intangible assets, and long-term investments). Liabilities and shareholders’ equity are not assets—they are sources of financing or claims against assets. Revenues, while they affect equity over time, are income statement items, not asset categories. Therefore, the correct view is that assets include both current and long-term assets.

Assets are resources controlled by the entity that result from past events and are expected to bring future economic benefits. On the balance sheet they are organized into two broad groups: current assets, which are expected to be used or converted to cash within a year (such as cash, accounts receivable, and inventory), and long-term assets, which are meant to provide benefits over more than one year (such as property, plant and equipment, intangible assets, and long-term investments). Liabilities and shareholders’ equity are not assets—they are sources of financing or claims against assets. Revenues, while they affect equity over time, are income statement items, not asset categories. Therefore, the correct view is that assets include both current and long-term assets.